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Court: FCC has no power to regulate Net neutrality

The Federal Communications Commission does not have the legal authority to impose strict Net neutrality regulations on Internet providers, a federal appeals court ruled Tuesday.

A three-judge panel in Washington, D.C. unanimously tossed out the FCC's August 2008 cease and desist order against Comcast, which had taken measures to slow BitTorrent transfers and had voluntarily ended them earlier in the year.

Because the FCC "has failed to tie its assertion" of regulatory authority to any actual law enacted by Congress, the agency does not have the authority to regulate an Internet provider's network management practices, wrote Judge David Tatel of the U.S. Court of Appeals for the D.C. Circuit.

Tuesday's decision could doom one of the signature initiatives of current FCC Chairman Julius Genachowski, a Democrat. Last October, Genachowski announced plans to begin drafting a formal set of Net neutrality rules -- even though Congress has not given the agency permission to begin.